ERC grants COC to one of CEDC’s 3-unit Coal-Fired Power Plant
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ERC Chairperson & CEO Zenaida G. Cruz-Ducut (center) awards the COC to Mr. Jesus N. Alcordo, President & CEO of CEDC. The awarding of the COC was witnessed by (left to right) Atty. Deborah T. Layugan, Comm. Maria Teresa R. Castañeda, Comm. Alejandro Z. Barin, Atty. Amanda Abrera-Bengson of CEDC, Comm. Jose C. Reyes, and Comm. Rauf A. Tan. |
The Energy Regulatory Commission (ERC) approved on 22 February 2010 the issuance of a Certificate of Compliance (COC) to one of the Cebu Energy Development Corporation’s (CEDC) three-unit (3 unit) coal-fired power plant. The said unit has an installed capacity of 83,700.35 kW which is a third (1/3) of the aggregate installed capacity of 251,101.05 (3 x 83,700.35) kW of the Circulating Fluidized Bed (CFB) plant, located at Brgy. Daanlungsod, Toledo City, Province of Cebu.
The CEDC’s COC application is for all the three (3) units of the new CFB coal-fired thermal power plant facility. The ERC approved only one of the three units due to the fact that the two (2) other units will be completed only in June 2010 and January 2011.
The CEDC is a joint venture between Global Formosa Power Holdings, Inc. (GFPHI) and Abovant Holdings, Inc. (AHI). The said two (2) companies entered into a Memorandum of Agreement on August 11, 2007 for the construction of a coal-fired thermal power plant in Toledo City, Cebu. CEDC was registered and incorporated with the Philippine Securities and Exchange Commission (SEC) on 05 December 2008 engaged primarily in the business of generating power derived from coal, fossil fuel, geothermal, nuclear, natural gas, hydroelectric and other viable sources of power for lighting and power purposes and whole-selling the electric power to the National Power Corporation (NPC), private and electric cooperatives, and other entities, and for carrying on all businesses incidental thereto. CEDC has an ERC-approved Electric Power Purchase Agreement (EPPA) with the Visayan Electric Company (VECO). As such, there is mutual willingness between the two parties to supply (on the part of CEDC) and purchase (on the part of VECO) the generated power at a contracted capacity of 105 MW for a cooperation period of 25 years commencing on the commercial operation date.
A COC is required from all generation companies (GenCos) by the ERC before the commencement of their commercial operations as provided in the ERC’s Guidelines for the Issuance of Certificate of Compliance for Generation Companies/Facilities. Among the pre-requisites for the issuance of COC is the submission of certification approvals from other government agencies like the Department of Environment and Natural Resources (DENR).
“The commissioning of one of CEDC’s coal-fired generators is timely given the current power shortage in the Visayas region. The COC approval process ensures that environmental safeguards are in place, the technology employed is efficient, and the operation will be reliable as the company is financially viable,” ERC Chairperson Zenaida G. Cruz-Ducut concluded.
March 9, 2010